For outsize stock gains in coming years, look to a specialty drug-maker, an oil pipeline operator and an airplane lessor, says one top-performing money manager. Jack Hough reports on Markets Hub. Photo: Reuters.

This transcript has been automatically generated and may not be 100% accurate.

... I ... you do you think about in this year's beginning to ... look your best looking for some stock picks ... three good ones for him and check out with some ... little lonesome sums of diamonds in the rupee may need to know that we got from this I think so sometimes my job Barron's is is easy is finding a top performing money manager Kong mile congrats him for stock has been given us the readers that's really why do here ... um I I I spoke manager of ... Osterweis Fund ... which is a farm that has double the broad stock market's performance over the past fifteen years could record ... it said ... it does perform specialized medium size companies this and get the three companies that have the potential to double in value over the next five years can be three or three the right topic they gain any broke down any game in ... the dead ... the ... tone for the first is valiant Pharmaceuticals meanwhile the problems in them than big Pharma is alot companies waste too much money on research that doesn't go anywhere on productive research spending ... as the company with that with a history of sped of using its capital wisely ... a real transformation momentum past four years is down fifty small deals either buying things were getting rid of things ... transform itself into a global company of less than ten percent of revenues coming from a one drop ... it's a calibrated debt in the Enterprise D that's with higher risk investment but ... if you believe that this company has spent its money wisely and this trend for transformational stage ... then you think is a stock that could have performed going for very troubling and value of Boston ... so for years of age in on that train Iraqi August eleven times earnings for cheaper than the broad stock market ... the number two Magellan Midstream Partners ... for sample this is the competence in the business of the ... cheaply and ... transporting we find petroleum products especially of the Houston area ... and other markets as it ... hadn't seen as making good money from that ... the parties master limited partnerships we get tax breaks to big dividend of minus four point four percent didn't ... pronounce reversing the flow of a key pipeline ... to to to bring and instead of going from his Marriott to Open West Texas with is a huge oil production boom ... in Houston ... that should be proper will come online next year Wall Street thinks earnings can pick up thirteen percent next year for this that this company ... should mean demand growth for investors now that I was fine the Number three aerial fairly straight famously around a center for giant airplane strain if you're ... if you're a smaller one again ... you're you're a smaller ... it this is a Lithonia copy of your smaller airlines ... some regional airlines or in a country that did the doesn't have the scale in order for twenty or thirty planes ... he just wanted one or two ... in both rarely seen basically lease planes instead they get better pricing ... and the spread that they are in this business is much better the more traditional financial comp is what banks earn right now ... ALM so they just went public last year about one a half times the book value of its lease portfolio it's come down to about even book value right now ... and Wall Street things that book values can increase seven percent next year I wonder how come the light that ... would do in a downturn in a bad time nor are they do better or worse ... I may be better ... while ... it's also your I'm thinking downturn would be would be great for coming like this to what's happening right now is ... financial companies are really hungry for anything that earns a decent return ... the guy who founded this company the company had before it did exactly the same thing he's a pioneer of aircraft leasing many sold out one to AIG in a tidy profit now he started a brand new one ... so this of this of this fund manager thinks that ... this is a stock that can produce similar returns and possibly catch the eye of one of these of financial companies is hungry for return he ... can to sell the NT before a key is to know ... Brett Arike checkout bags they pre much appreciated IQ